Royal Ceramics said net revenues rose 5.5 percent to 1.8 billion rupees and cost of sales rose at a faster 7.7 percent to 935 million rupees, allowing gross profits to grow at a slower 3 percent to 865 million rupees.
Associate company profits rose to 143 million rupees from 16.9 million rupees.
The state raised taxes on toilet fittings and ceramic goods this year, making house building more expensive to citizens, but giving more tax arbitrage profits to ceramic industrialists.
Sri Lanka's ceramic tile makers are no longer efficient enough to compete in export markets.
In February prices of kerosene which was previously heavily subsidized and used by the ceramic industry was also market priced.
